California Homeowners Insurance Crisis Goes Live on CBS/KCAL
Published Date: 06/03/2025
California’s homeowners insurance crisis has finally reached prime time. When CBS/KCAL News Los Angeles launched its “Home Insurance Week” coverage with a live homeowners insurance hotline on June 3, 2025, the phones began ringing before the broadcast even started—and they didn’t stop all evening.
What producers expected to be a busy hour quickly became a real-time portrait of a system under extreme strain: homeowners unable to afford soaring premiums, wildfire victims stuck in endless claims battles, and retirees paying more for insurance than for their mortgage.
Phones Ringing Off the Hook Across Los Angeles
As anchors announced the hotline, reporter Christine Lazar stood inside the bustling newsroom surrounded by phones, binders, and insurance experts fielding nonstop calls.
“Our phone lines have been open since 3:30,” Lazar told viewers. “We’re hearing from so many people who have insurance-related questions—especially, ‘How can I afford insurance?’ and ‘What can I do about my fire claim?’”
Among the experts answering calls was Karl Susman, an independent insurance broker and educator known for helping Californians navigate the state’s unstable insurance market.
“You can hear it—the phones are ringing off the hook,” Lazar said. “The goal tonight is to give people the knowledge and power they need so they can push back if they feel they’ve been taken advantage of.”
That message—knowledge and power—became the defining theme of the night.
Multiple Adjusters and Broken Claims Processes
When Lazar asked Susman what he was hearing most from callers, his answer revealed a disturbing pattern.
“It seems like one of the more common calls is that people are having multiple adjusters assigned,” he explained. “They start out with one, they do some work, and then get assigned another—sometimes even another one.”
Susman shared that one homeowner had been passed between five different adjusters during a single claim.
“If people are having three, four, five, six adjusters, that can be very traumatic and frustrating,” he said. “They should definitely complain, ask for a supervisor. And if they’re still not getting satisfaction, then go to the Department of Insurance. That’s not normal, and that’s not okay.”
For many viewers, it was the first time an industry insider publicly confirmed what they had already experienced—and suspected was wrong.
Why Adjuster Overload Has Become So Common
The rise in multiple-adjuster claims is a symptom of deeper stress within California’s insurance system. After major wildfires, floods, and storm events, insurers often turn to third-party adjusting firms to manage surges in claims.
High turnover, massive caseloads, and staffing shortages lead to fragmented communication and inconsistent decision-making. Each adjuster change forces homeowners to restate their story, resubmit documents, and face new interpretations of coverage.
The emotional and financial toll adds up quickly. Susman’s guidance to escalate issues to supervisors and, when necessary, to the California Department of Insurance gave homeowners a concrete way to break out of bureaucratic gridlock.
Premium Shock and the Affordability Crisis
Beyond claims handling, affordability dominated the night’s calls. Homeowners described premiums that had doubled—or even tripled—within just a few years.
One caller told Susman her premium had climbed from $1,500 to nearly $4,500.
“She asked, ‘What’s it going to be next year?’” Lazar reported.
Susman’s advice was both practical and pointed.
“Shop around—and treat it like you’re looking for a new doctor,” he said. “You want someone good, someone who knows what they’re doing. Find an independent broker who can give you options.”
For homeowners uncomfortable using online tools, Susman offered another critical option.
“If you don’t use computers, just call the California Department of Insurance. Give them your ZIP code and ask for a list of independent brokers in your area.”
That advice resonated strongly with older homeowners who often feel excluded from today’s digital-first insurance marketplace.
The Structural Forces Driving Premium Increases
Behind every distressed caller lies a broader regulatory and economic reality. Under Proposition 103, passed in 1988, insurers must receive state approval before raising rates—a safeguard originally designed to protect consumers.
But with rapid inflation, soaring reinsurance costs, and worsening wildfire risk, insurers argue that the approval process has become too slow and rigid to reflect real-world exposure.
As a result, several major carriers, including State Farm and Allstate, have paused new business, limited coverage, or stopped renewing policies in high-risk regions.
This retreat has pushed hundreds of thousands of homeowners into the California FAIR Plan, the state’s insurer of last resort. FAIR Plan policies typically cover only fire damage. To obtain protection for theft, water damage, and liability, homeowners must purchase separate wraparound policies, dramatically increasing total insurance costs.
For many Californians, especially those on fixed incomes, the financial math no longer works.
“Push Back — You Have More Power Than You Think”
Throughout the broadcast, Lazar and Susman repeated one consistent message: don’t accept the first denial or explanation without question.
“If you’re told, ‘Sorry, we’re not covering that,’ speak to someone you trust,” Susman advised. “Talk to your broker or agent. Ask questions. If that doesn’t work, go to the Department of Insurance. Push back—because consumers have more power than they think.”
This empowerment-first mindset has become central to California’s consumer education efforts. Events like the CBS/KCAL hotline transform frustration into action by reminding homeowners that they can challenge unfair claim practices, demand written explanations, and escalate disputes through proper channels.
The Media’s Role in a Statewide Consumer Emergency
While regulators debate long-term reforms and insurers wrestle with climate-driven risk, live media events like “Home Insurance Week” serve a unique role. They connect ordinary people with immediate, human solutions.
The hotline functioned as both journalism and public service, offering viewers something online searches often cannot: direct access to experienced professionals willing to listen.
Lazar summarized the mission simply: to give people the tools they need to push back when the system fails them.
What Homeowners Can Do Right Now
Drawing from the hotline and guidance from the California Department of Insurance, several immediate steps can help homeowners navigate today’s volatile market.
Homeowners should review their policies annually to ensure coverage reflects current rebuilding costs and does not contain outdated limits. Working with a licensed independent broker can unlock access to multiple carriers and broader pricing options.
Every interaction with insurers should be documented, especially when multiple adjusters become involved. When claims are delayed, denied, or handled inconsistently, homeowners should not hesitate to file formal complaints with the Department of Insurance.
Finally, while cutting coverage may lower premiums in the short term, reducing core protections often creates catastrophic financial exposure later.
Restoring Trust Through Transparency and Access
California’s insurance system remains under extraordinary pressure, but the CBS/KCAL hotline demonstrated that transparency still has the power to restore trust.
By giving homeowners direct access to experts, the broadcast narrowed the gap between policyholders, regulators, and the insurance industry.
“When we shop for anything—insurance, a doctor, a car—we look for someone we trust,” Susman said. “That’s the starting point. The right people make all the difference.”
Final Thoughts on a Crisis That Now Belongs to Everyone
California’s homeowners insurance crisis is driven by climate risk, regulation, and economic forces—but its human impact is unmistakable. Families are struggling to protect their homes, their savings, and their sense of security.
The CBS/KCAL Home Insurance Hotline showed that progress begins with awareness, access, and informed advocacy. It turned confusion into empowerment and anxiety into action.
“The phones were ringing off the hook for a reason,” Lazar said. “People are desperate for answers. And the good news is—there are people who can help.”
Because at its core, insurance is not just about risk. It is about trust, transparency, and the promise of protection when it matters most.
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